HomeMy WebLinkAboutExhibit 4 - Vergus Sewer Agt.CONSTRUCTION AND MAINTENANCE AGREEMENT
FOR SANITARY SEWER AND WATER
THIS AGREEMENT is entered into this day of 64 <: -: , 2003 by and between Spring Lake
Township, a political subdivision of the State of Minnesota (herei ter "Township "), and the City of Prior Lake, a
municipal corporation (hereinafter "City "), for the construction and maintenance of a sanitary sewer and water facility to
serve certain areas in the vicinity of Spring Lake, Scott County, Minnesota, and provides as follows:
RECITALS
WHEREAS, The City and Township desire to cooperate to provide sewer and water to that certain portion of
property in Spring Lake Township legally described in Exhibit A (referred to hereinafter as the "Vergus
Area "), which is incorporated herein as if fully set forth; and
WHEREAS, property(ies) in the Vergus Area have a high percentage of failing and noncompliant on -site septic
systems; and
WHEREAS, the Vergus Area lies within an Orderly Annexation Area designated in an Order Annexation Agreement
adopted and approved by the Township of Spring Lake on November 16, 1972 and the Village of Prior
Lake on November 20, 1972; and
WHEREAS, subject to the provisions of said Orderly Annexation Agreement, attached as Exhibit B, which Exhibit B
is incorporated herein as if fully set forth; and
WHEREAS, the extension of sewer and water to the Vergus Area is intended to address an immediate
environmentally sensitive problem; and
WHEREAS, the extension of sewer and water to the Vergus Area is not intended to encourage or facilitate new
development; therefore, the Township and City have agreed to limit the density of future development
within the Vergus Area.
Now, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for such good and
valuable consideration, the sufficiency of which is not disputed, the City of Prior Lake, Spring Lake Township, and the
Metropolitan Council agree as follows:
Definitions As they are used in this Agreement, the following terms shall have the meaning given to them in
this Section:
City shall mean the City of Prior Lake, Minnesota, a Minnesota municipal corporation.
Township shall mean the Township of Spring Lake, Scott County, Minnesota.
County shall mean Scott County, Minnesota, a Minnesota municipal corporation.
Connection Unit shall mean a residential or commercial building connection to the Facility system or
any independent sanitary sewer and water service line that would utilize the Facility.
Facility shall mean the sanitary sewer, including lift stations, and water facilities to be constructed by
the Township and connected to City utilities to serve the service area legally described and depicted in
Exhibit A.
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Metropolitan Council shall mean the agency created by Minnesota Statutes §473.123.
Parties shall mean the City of Prior Lake and Spring Lake Township.
Purpose The City and Township desire to provide an environmentally sensitive and responsible solution to
the problem of non - compliant and failing septic systems on certain properties located in the Vergus Area. Non-
compliant septic systems are one factor resulting in an environmental threat to Spring Lake which flows directly
into Upper Prior Lake. Consequently, the waters of Upper and Lower Prior Lake are threatened if contaminates
from the non - compliant septic systems pollute Spring Lake. Connecting the properties with non - compliant or
failing septic systems to municipal sewer and water will protect Spring Lake, Upper and Lower Prior Lake and
preserve the property value of the homes in the area served by the municipal facilities.
The City and Township desire to enter into this Agreement whereby the City will provide the Township with
limited sanitary sewer and water capacity. The Vergus Area served by the Facilities provided pursuant to this
Agreement will be limited to maintain development densities consistent with the Metropolitan Council's Blueprint
2030 as may be revised or amended from time to time. This limitation will be implemented by limiting the
number of Connection Units permitted to connect to the Facility.
2.1 Recitals. The recitals set forth above are incorporated herein as if fully set forth.
2.2 Exhibits. Exhibits A and B referred to in the Recitals above are incorporated by reference into this
Agreement as if they were fully set forth herein.
3. Fees As part of the consideration for permitting the Township to connect the Facility to the City's sanitary
sewer and water pipes, the Township shall pay the following City fees:
City SAC and WAC per Connection Unit;
City Water tower fees per Connection Unit;
City Sewer and Water Trunk Acreage Fees based on up to [80] Connection Units x [12,500
square feet].
3.1 Amount of Fee. The amount of the City fees shall be the same fee as that fee adopted by the City
Council and in effect citywide at the time the fee is required to be paid.
3.2 Metropolitan Council Reserve Capacity Charges. In addition to the City fees set out above, the
Township shall pay directly to the Metropolitan Council all Reserve Capacity Charges in the form of
Service Availability Charges ( "SAC ") as determined by the Metropolitan Council.
3.3 Payment of Fees Required. All fees set forth in this Paragraph 3 for those connection units utilizing
the system at the date of completion shall be paid within 30 days by the Township to the City of Prior
Lake.
4. Preliminary Design The preliminary design of the Facility shall be in substantial accord with the design
outlined in the Preliminary Engineering Report of Schoell & Madson prepared by Lee Koppy and dated March
21, 2002. A copy of this Preliminary Report is incorporated by reference hereto as Exhibit C.
5. Plans and Specifications Prior to the commencement of construction of the Facility, it shall be the obligation
of the Township to provide to the City plans and specifications for the Facility, prepared by a professional
engineer licensed by the State of Minnesota. Such designs shall be in accordance with the requirements of the
City Public Works Design Manual, incorporated by reference herein. The City shall have the right to review and
approve the plans and specifications for the Facility, said comments to be received within fifteen (15) business
days after submission of a complete set of the plans and specifications to the City. The plans and
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specifications also shall be submitted by the Township to the Prior Lake /Spring Lake Watershed District,
Metropolitan Council, the Minnesota Department of Health and Minnesota Pollution Control Agency for review
and comment.
5.1 Change Orders. Any Change Orders during construction shall be submitted to the City Engineer at
least five (5) business days prior to approval by the Township. If the City Engineer fails to comment on
the proposed change order prior to such time as the Change Order is before the Township Board for
consideration, the City shall be deemed to have concurred in the Change Order. In no event shall the
City be liable in any manner for construction delays which may occur as a result of a Change Order or
the City's response thereto.
6. Necessary Approvals and Rights -Of -Way Prior to the commencement of construction of the Facility, the
Township shall have commenced quick take proceedings to acquire necessary right -of -way or have obtained
construction easements and other necessary approvals for right -of -way from persons and entities owning land
or rights in land across which the Facility will be constructed.
Prior to connection of the Facility to the City, the Township will apply for, satisfy and receive all approvals and
conditions required by the Metropolitan Council [including but not limited to an amendment to their
Comprehensive Plan and a Tier 1 and Tier 2 Comprehensive Sewer Plan.
6.1 Permits. Prior to the commencement of construction of the Facility, the Township must obtain and
provide copies to the City of necessary permits from the Prior Lake /Spring Lake Watershed District; the
Minnesota Department of Health for watermain extension /construction; Scott County for utility and
driveway permits; and the Minnesota Pollution Control Agency for sanitary sewer
extension /construction. A copy of the Minnesota Pollution Control Agency permit application for
sanitary sewer extension /construction shall also be forwarded to the Metropolitan Council.
Inspection During Construction It shall be the obligation of the Township to provide for full -time construction
observation and testing of the Facility during its construction by inspection personnel under the direction of a
professional engineer licensed in the State of Minnesota in order to ensure that the construction comports with
the plans and specifications described in Paragraph 5 of this Agreement.
7.1 The City may, at sole discretion and cost, provide construction observation personally during the
construction of the Facility.
8. Costs The cost of all aspects of the design, construction and construction observation and testing of the
Facility shall be borne by the Township.
8.1 Oversizing Costs. The City may require the Township to design, construct and provide construction
observation of the Facility to include oversizing, overdepth and extension of the Facility to accommodate
future expansion. All reasonable costs associated with oversizing, overdepth or expansion shall be the
responsibility of the City.
8.2 Lakeview Drive. The street reconstruction costs for Lakeview Drive shall be born solely by the Township.
9. As -Built Drawings Within three (3) months of completion of the Facility, the Township shall provide As -Built
Drawings, certified by a professional engineer licensed in the State of Minnesota, to the City and the
Metropolitan Council and shall retain a copy of the same in the records of the Township. The Township shall
also submit the As -Built Drawings in electronic format to the City in a format compatible with the City's current
software. If the As -Built Designs indicate that the Facility as constructed is not substantially in conformance
with the City Public Works Design Manual and the approved plans and specifications and all modifications
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thereof, the City shall notify the Township in writing of the alleged deficiencies. The Township Engineer and the
City Engineer shall meet to determine whether such lack of conformity with the Design Manual or approved
plans and specifications is, in their professional opinion, substantial and whether the alleged deficiency will
adversely affect the City sanitary sewer and water systems. Minor deviations may be waived by the City. The
City will not unreasonably withhold waiving a minor deviation if the nature of the deviation will not adversely
affect the Facility and City systems. If it is determined that any nonconformity is substantial and may, if not
corrected, adversely affect the Facility or the City system, the Township shall, after notice, promptly make the
corrections to the system to bring it into conformity. If the Township fails after reasonable notice to make the
corrections requested by the City, the City shall have the right to disconnect the Township Facility from the
City's sanitary sewer and water pipes.
10. Regional Limitations as Limitations on Township The Township recognizes that certain regional limitations
in sanitary sewer capacity exist which might impact the capacity of sanitary sewer which shall be available for
allocation to the Township in the future. As such, the number of individual connections to the Facility by the
Township shall not exceed the number approved by the Metropolitan Council in the Townships Comprehensive
Sewer Plan or eighty (80) Connection Units, whichever is smaller. Any increase in the number of Connection
Units authorized to connect to the Facility shall require an amendment to this Agreement executed in writing by
the parties.
11. Reserved Capacity Charges The Township agrees to pay the Metropolitan Council reserve capacity charges
(which presently takes the form of Service Availability Charges ( "SAC ")), or any statutory successor to such
charges, pursuant to Metropolitan Council regulation and policy. Such payments will be made directly to the
Metropolitan Council.
11.1 Future Connections. All future Connection Units to the Facility shall be subject to the payment
provisions in Paragraph 3 and this Paragraph. Such payments shall be made prior to actual
connection to the Facility.
11.2 Payment of Metropolitan Council and City Fees. Before the Facility is authorized to connect to the
City, the Township shall pay: (1) the Metropolitan Council reserved capacity charges, at the then -
prevailing rate, for the number of Connection Units connected to the Facility; and (2) the City SAC,
WAC, Water Tower and Trunk acreage charges, at the then prevailing rate, for the number of
Connection Units actually connected to the Facility.
12. Notice to Parties The Township shall provide the City, with a copy to the Metropolitan Council, 30 days'
written notice of properties to be connected to the Facility. The notice shall identify the owner, address and
legal descriptions of the property(ies) to be added.
13. Maximum Flow Permissible The Township shall be entitled to discharge from its sanitary sewer flow from up
to, but not more than the number of Connection Units authorized in Paragraph 10 of this Agreement. The right
to discharge sanitary sewage which the Township obtains under the terms of this Agreement, and the amount
of capacity which the Township has the right to use is obtained exclusively by the Township for use by the
properties identified, and no portion, allotment, apportionment or share of the rights so obtained by the
Township may be assigned, allocated by the Township to any property outside of the service area depicted in
Figure 3 of Exhibit B.
14. Blueprint 2030. The Township will not request and the City will not consent to any increase in Connection
Units, above the eighty (80) provided for in this Agreement, if such an increase would permit development
densities that are inconsistent with the Metropolitan Council's Blueprint 2030 incorporated by reference herein.
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15. Ownership of the Facility Upon completion of the Facility, the Township shall retain all right, title and interest
in and to all portions of the Facility which lie within the Township.
15.1 Transfer of Ownership. Once the bonds to fund construction of the Facility are fully satisfied and the
Area(s) served by the Facility are annexed to the City, ownership of the Facility shall transfer to the City,
16. Annexation The City agrees not to initiate or support annexation proceedings involving any properties served
by the Facility or until all bonds issued to fund the Facility have been paid in full. Twenty (20) years is the
projected term of debt instruments associated with the financing of the Facility.
17. Use, Monitoring and Maintenance of the Facility The Parties agree that the following actions are necessary
to monitor and maintain the Facility and its use:
17.1 Township Ordinance. Metropolitan Council Rules The Township will continue to enforce an
Ordinance which supplements and aids the enforcement of the Waste Discharge Rules of the
Metropolitan Council, but which will not preempt those Rules. It is the express agreement of the
Parties that the Waste Discharge Rules of the Metropolitan Council (including the Metropolitan
Council's strength discharge provisions) shall apply to users of the Facility within the boundaries of the
Township. The use of the Facility shall be in all respects consistent with the provisions of the Permit for
the Construction and Operation of a Disposal System, issued to the Township by the MPCA.
Prior Lake City Code and Township Ordinance In a previous Agreement between the City and
Township to provide sanitary sewer and water to the South Shore Drive Area of Spring Lake Township,
the Township adopted Ordinance Nos. 99 -3 and 00 -2, attached hereto and incorporated collectively as
Exhibit D, to incorporate Section 704 and 705 from the Prior Lake City Code, attached hereto and
incorporated herein as Exhibit E.
Any future amendments to the Prior Lake City Code relating in any manner to sanitary sewer or water,
which apply to City residents, shall also apply to Township residents served by the Facility. The City
shall provide the Township Clerk with notice of any such Code provisions. Upon receipt of notice from
the City, the Township shall provide to its residents served by the Facility notice of said Code
provisions. The Township shall be responsible for enforcement of said City Code provisions for its
residents connected to the Facility. Failure to enforce said Code provisions shall be considered a
breach of this Agreement.
17.2 Sump Pumps. No roof runoff, sump pump, subsurface or surface water drainage shall be connected
to the sanitary sewer. All sump pump discharge systems shall have a permanently installed discharge
line, which shall not at any time discharge clear water into the sanitary sewer system. The sump pump
discharge system shall consist of a rigid discharge line, without valving or quick connections for altering
the path of the discharge.
17.3 Access For Inspections. The Township will grant access at reasonable times and upon reasonable
notice to the City and the Metropolitan Council to its sanitary sewer and water hookup records in order
to permit the City and the Metropolitan Council to verify that all City Charges and the Reserved
Capacity Charges paid by the Township are accurate.
17.4 Metering. The Township agrees to:
1) Furnish and install a Hexagram Star System. data collector unit of a type exactly as the City
currently uses, and at a location approved by the City.
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2) Require the installation of City approved water meters, pressure reducers and appurtenant
meter reading equipment at each residence connecting to the system. The meters and
appurtenant equipment shall be purchased from the City at the prevailing rate at the time of
purchase detailed in the City Fee Schedule. All water meters are to be installed by City of
Prior Lake personnel.
17.4.1 Payment The City shall individually bill the Township residents based on the flow reported by
the meter reading equipment at the prevailing City sanitary sewer, water and capital facility
charge rates in effect at the time. The City currently provides bi- monthly billing, but reserves
the right to change the billing schedule at the City's discretion. The bills will itemize the usage.
Payment to the City shall be prompt.
A. Delinquent Payment
In the event that a Township resident is delinquent in the payment of their water and
sewer bill, the water service shall be subject to shutoff by the City and remain
disconnected until payment in full is received by the City, including all shutoff fees.
B. Final Bills
If a final bill remains unpaid by a former Township resident who has moved, the bill
shall be paid by the Township.
17.5 Maintenance of the Facility. The City shall be responsible for all regular ongoing maintenance of the
system at the same level as other facilities within the City, and as reflected in the fee charged for
services. The Township shall be responsible for any replacement or repair to the system beyond
regular maintenance. Regular sanitary sewer maintenance means jetting every 3 years. Regular
watermain incontinence means the City shall provide semi - annual watermain flushing and minor
repairs to fire hydrants. In the event of water or sewer main breaks, the Township shall notify the City
immediately of the situation. Service requests and complaints shall be received and handled by the
Township. The City may, on occasion, at its discretion and upon the request of the Township provide
maintenance service, over and above that identified herein, to the Facility on a fee for service basis. If
the City agrees to provide service, the scheduling thereof is at the discretion of the City.
17.51 Definition of Routine Sewer and Water System Maintenance Routine maintenance is limited
to a bi- annual jetting and flushing, watermain and sewer main repairs within the road right -of-
way and /or permanent utility easements, and routine maintenance of the left station pumps
and controls. Backups, leaks, or any sewer or water problems within the customer's house or
below their property are the customer's responsibility. Specifically excluded from the definition
of routine maintenance is bituminous street patching caused by water or sewer main repair,
which is deemed the Township's responsibility, and total replacement of the lift station pumps
and /or controls when necessary, which are both the responsibility of the Township. In the
case of water or sewer main repair, the City will repair the roadway so that it is usable until
such time as bituminous repairs can be made by the Township.
18. Service The City shall provide regular and uninterrupted service except for periods of regular maintenance,
and except for events not within its control including, but not limited to equipment failure, flood, natural
disasters, or other natural events beyond the control of the City, which includes actions of the Metropolitan
Council. —�
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18.1 It is understood by the Parties, however, that the City retains the right to shut off service in accordance
with its policy in emergency cases.
19. Remedies For Breach, Payment or Service
19.1 By Township In the event the Township breaches the provisions of this Agreement setout in
Paragraphs 3, 10, 11.1, 13, 14 or 17 the City shall provide the Township with written notice of the
breach and provide the Township with thirty (30) days to cure the breach. Failure to pay charges due
to the City shall be considered a breach of this Agreement. If the Township fails to cure the breach
within the time specified, the City may disconnect the Facility from the City sanitary sewer and water
pipes. This in no way limits the City from pursuing other remedies available to it at law or equity.
19.2 By City In the event the City breaches the provisions of this Agreement setout in Paragraphs 17.5 or
18 the Township shall provide the City with written notice of the breach and provide the City with thirty
(30) days to cure the breach. If the City fails to cure the breach within the time specified the Township
may seek injunctive relief, including costs, disbursements and attorneys fees to bring said action. This
in no way limits the Township from pursuing other remedies available to it at law or in equity.
20. Remedies Each right, power or remedy herein conferred upon the City and the Township are cumulative and
in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City
or Township at law or in equity, or under any other agreement, and each and every right, power and remedy
herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may
be deemed expedient by the City or the Township and shall not be a waiver of the right to exercise at any time
thereafter any other right, power or remedy.
21. Notice Notice provided under this Agreement shall be in writing, signed by the officers signatory to this
Agreement or their successors and shall be sent by Certified Mail, Return Receipt Requested, to the Parties at
the following addresses:
To the Township: Spring Lake Township
15870 Franklin Trail SE, #104
Prior Lake, Minnesota 55372
ATTN: Town Clerk
To the City: 16200 Eagle Creek Avenue S.E.
Prior Lake, Minnesota 55372 -1714
Attention: City Manager
22. Hold Harmless And Indemnification The Township of Spring Lake hereby indemnifies and holds the City
harmless from any and all causes of action or claims arising out of or in connection with the Facility or this
Agreement. The Township further agrees to indemnify the City against, and hold them harmless from those
claims, liabilities, demands, damages, costs and expenses arising out of negligent or willful actions by the
Township, its employees or residents which result in penalties imposed against the City, whether by federal,
state or local governmental units, for violations of permits which are required for the City or the Metropolitan
Council to continue operation of the sewer and water facilities to which the Township is connected.
The City of Prior Lake hereby indemnifies and holds the Township harmless from any and all causes of action
or claims arising out of negligent or willful actions by the City in connection with services provided pursuant to
this Agreement.
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23. Jurisdiction This Agreement shall be governed by the laws of the State of Minnesota,
24. Successors And Assigns The rights, privileges and obligations of the Parties under this Agreement are
intended to, and shall remain in full force and effect and shall bind any successor agencies or entities to which
the authorities and obligations of the Parties may be assigned by law.
25. Effective Date The Agreement shall be effective upon all of the following having taken place: (a) this
Agreement having been approved by Resolution of the Township Board and by Resolution of the City Council
and (b) this Agreement having been signed by all of the officers designated as signatories below.
26. Administrative Fee The Township shall pay to the City an Administrative Fee equal to three percent (3 %) of
the lesser of the Design Engineer's Opinion of Probable Cost for construction of the Facility or the amount of
the award of the bid for construction of the Facility. The Administrative Fee shall be paid to the City prior to
connection of the Facility to the City sanitary sewer and water pipes.
27. Material Provision Unless otherwise specifically provided within a specific paragraph of this Agreement,
every term provision, covenant and proviso shall be construed as a "material provision."
28. Recordinq This Agreement shall be recorded against all properties in the service area depicted in Figure 3 of
Exhibit B at the Township's sole cost and expense. The purpose of this recording provision is to insure that the
owners of property in the service area depicted in Figure 3 of Exhibit B have notice that the number of
Connection Units allowable under this Agreement is limited to the number authorized in Paragraph 10 of this
Agreement. The existence and /or recording of this Agreement against a particular property is not intended to
guarantee or entitle that a particular property will be connected to the Facility.
29. Duplicate Originals This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first hereinabove
written.
Spring Lake Township
By: By
Its: �
By:
Its:
THIS INSTRUMENT WAS DRAFTED BY:
Halleland, Lewis, Nilan, Sipkins & Johnson
Pillsbury Center South, Suite 600
220 South Sixth Street
Minneapolis, MN 55402 -4501
DN: 182975, v.5
City of Prior Lake
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this J day of 2003, by
r iv , eme be'vt"�S and the ��oz� -�� �' �,z,
reeetitr�y, of Spring Lake Township, a Minnesota municipal corporation, on behalf of the corporation and pursuant to
the authority granted by the Township.
f: KELLY MEYER
' NOTARY PUBLIC- MINNESITA
=�. My Commission Ex, IMS Ja ,. 3'. 2005
NotaryfDublic
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this Z. day of e, 2003, by Jack
Haugen and Frank Boyles, respectively the Mayor and City Manager of the of Prior Lake, a Minnesota municipal
corporation, on behalf of the corporation and pursuant to the authority gra DW yjits City Council.
KELLY MEYER
NOTARY PUBLIC - MIN? BOO -A Notary Pub
=P``•' My Commission E r:,es Jar.. 31, 205
DN: 182975, v.5 9